Share redemption 2008
A resolution on the redemption procedure was passed by the Extraordinary General Meeting of Bure on 11 December 2008. Detailed information about the voluntary share redemption procedure is to be found in the information brochure “Share redemption 2008” below.
Summary of the redemption offer
For each share in Bure, the holder receives en redemption right
5 redemption rights entitle the holder to redeem 2 shares in Bure
SEK 30.00 per share
Tax issues in Sweden in brief regarding the Share Redemption programme 2008
Receipt of redemption rights does not trigger any taxation. Taxation is triggered only when redemption rights are sold or when the shares are redeemed.
Redemption of shares
For purpose of taxation, redemption of shares is equal to sale of shares. Capital gain or capital loss is calculated by the difference between the redemption price (selling price), SEK 30 per tendered share, and the acquisitions cost for the tendered share. When calculating the acquisition cost per tendered share the acquisition cost per share is considered the average acquisition cost of all shares of the same kind, calculated with regard to occurred changes in the holding time.
To this adjusted average acquisition cost per tendered share in Bure should the purchase price of bought redemption shares be added.
Alternatively, the so called standard method can be used. This method means that the acquisition cost is calculated as 20 per cent of the redemption price.
Disposal of redemption rights
Taxation according to capital gains rules are applied on the disposal of redemption rights. Receipt of compensation for non-exercised redemption rights is regarded as a sale of redemption rights. Redemption rights acquired through holdings of shares in Bure are considered purchased for SEK 0.
Tax liable capital gains tax is therefore applicable on the entire disposal amount of the redemption rights, after deduction of sales costs. The standard method can not be used to determine the acquisition cost for a redemption right that has been received through holdings of shares in Bure.
The acquisition price for a redemption right that has been purchased in the market is constituted by the acquisition price. In calculation of the acquisition cost for a redemption right, the average acquisition cost for all redemption rights should be computed. If the standard method can be applied on purchased redemption rights is not clear.